The Australian Senate has launched a formal inquiry into the employment outcomes of university graduates, spotlighting concerns about entry-level job prospects amid evolving labour market conditions. The Senate Education and Employment References Committee is examining the rise in graduates facing difficulties securing work, with a focus on structural factors affecting the transition from study to employment.

Background to the Senate Inquiry

The inquiry was referred in March 2026 following parliamentary debate highlighting a perceived increase in graduates without full-time roles shortly after completion. Its terms of reference encompass the state of the entry-level job market, the quality of university education, alignment between taught skills and employer needs, comparisons with other countries, and the broader economic, social and psychological effects on graduates. Submissions closed in early June 2026, drawing input from peak bodies, institutions and researchers.

Current Graduate Employment Landscape

Recent data from the Quality Indicators for Learning and Teaching Graduate Outcomes Survey reveals that 86.9 per cent of undergraduate graduates were employed shortly after completion in 2024, with 74 per cent in full-time positions. These figures represent a modest decline from the 78–79 per cent full-time rate recorded in 2022–2023, though they remain above pre-pandemic levels in several measures. Longitudinal tracking shows strong recovery over time, with many graduates reaching 91 per cent full-time employment within three years of initial measurement.

Broader Australian Bureau of Statistics figures reinforce that individuals with post-secondary qualifications enjoy employment rates around 80 per cent, compared with 58 per cent for those without such credentials. Reports from Jobs and Skills Australia further illustrate positive long-term trajectories, particularly in fields such as mining engineering, medical studies and education, where qualification-to-career alignment is high.

Key Factors Shaping Outcomes

Labour market conditions play a central role. Graduate job postings fell sharply in 2024 and continued to soften into 2025, reflecting wider economic pressures rather than isolated issues within higher education. Universities Australia’s submission emphasises that employment outcomes are driven primarily by external demand rather than shortcomings in program quality or relevance.

Skills alignment remains under scrutiny. Employers consistently seek capabilities in critical thinking, digital literacy and industry-specific knowledge. While universities have expanded work-integrated learning and micro-credentials, gaps persist in certain disciplines where rapid technological change outpaces curriculum updates.

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Stakeholder Perspectives

Universities Australia argues the inquiry risks oversimplifying a complex picture and reinforcing narratives that undervalue higher education at a time when Australia needs more graduates to support productivity and growth. Individual universities and academics have highlighted successful programs that deliver strong placement rates and employer satisfaction.

Graduate voices, captured through surveys and submissions, point to short-term challenges including underemployment and the psychological toll of prolonged job searches. Employer groups stress the need for clearer signals on graduate readiness, particularly in emerging areas such as artificial intelligence and sustainable industries.

International Comparisons

The inquiry’s terms explicitly invite examination of comparable jurisdictions. OECD data shows tertiary-educated adults across member countries maintain employment rates approximately 10 percentage points higher than those without upper-secondary qualifications. Countries with strong apprenticeship systems or closer university-industry partnerships often report smoother transitions, offering potential lessons for Australian policy.

Impacts on Graduates

Beyond immediate earnings, delayed entry into stable employment can affect mental health, career confidence and long-term wealth accumulation. Submissions note that while most graduates eventually secure suitable roles, the interim period carries measurable costs in lost experience and financial strain.

Submissions and Evidence Base

The committee has received detailed contributions, including a comprehensive response from Universities Australia available on its website. Additional analysis from the Jobs and Skills Australia report on higher education outcomes provides administrative data showing robust career progression across diverse fields.

Further reading on the inquiry process is available via the Australian Parliament House inquiry page.

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Implications for Australian Higher Education

Findings from the inquiry could influence funding models, quality assurance frameworks and expectations around graduate employability metrics. Institutions are already responding with enhanced career services, expanded industry partnerships and curriculum reforms focused on future-proof skills.

Future Outlook and Recommendations

With Australia’s economy increasingly skills-intensive, sustained investment in higher education remains critical. Stakeholders advocate for balanced policy responses that address short-term labour market frictions while preserving the broader value of university education. Continued monitoring through QILT surveys and longitudinal studies will be essential to track progress.

Resources for academics and administrators seeking roles or insights into sector trends are available through targeted platforms such as higher-ed-jobs listings and career guidance materials.